Texas Instruments Inc (TXN)

[Eric]

TI CQ1 Earnings ...

• TI Reports Financial Results for 1Q08

http://www.ti.com/corp/docs/investor/quarterly/1q08.shtml

--> Revenue was $3.27 billion, up $81 million, or 3 percent, from a year ago.
--> EPS was $0.49, including discrete tax items of $0.06
--> TI Revenue was up 3 percent from the year-ago quarter, led by 20% growth in high-performance analog semiconductors.
--> TI’s operating profit grew 19 percent YoY
--> Compared with the fourth quarter, TI revenue declined [less than seasonally normal] 8 percent primarily due to weaker sales into cell phones, especially high-end cell phones.
--> In Q1 TI demonstrated a prototype cell phone based on the Android open source platform and built using TI’s OMAP applications processor and connectivity solutions.

• Q1 Financials in MS Excel Format

http://www.ti.com/corp/docs/investor/quarterly/ti1q08.xls

Microchip stocks down on Texas Instruments 2Q outlook

Did the market like TI's earnings? In a word, No. "Disappointing guidance from Texas Instruments (TXN) was weighing on technology stocks."

At noon following earnings TXN was down 6.37% (-$1.95) at $28.64 and draging down semis and techs. TXN is well off its 52 Week High of $39.63 and close to its 52 Week Low of $27.51. Its market cap is $37.88 Billion on 1.32 Billion shares outstanding.

At 11:00 am ...

• Advanced Micro Devices Inc. down 4 cents to $6.10.
• Intel Corp. down 26 cents to $22.19.
• Qualcomm Inc. down 86 cents, or 2 percent, to $41.77.

>> Texas Instruments Shares Fall More Than 5% On Weak Outlook

Benjamin Pimentel
MarketWatch
April 22, 2008 11:03 a.m. EDT

http://tinyurl.com/5loub5

Shares of Texas Instruments Inc. fell more than 5% Tuesday morning after the chip maker issued a second-quarter outlook that fell below Wall Street expectations. CEO Rich Templeton cited the cloudy economic horizon for the company's projection, saying in a statement, "Given uncertainty in the near-term economy, we have become more conservative with our outlook for the second quarter." But he also said that, "More strategically, we believe our long-term opportunity is excellent."

For now, investors are not buying the long-term optimism. In the first quarter, TI reported net profit of $662 million, or 49 cents a share, compared with $516 million, or 35 cents a share, in the year-earlier period. The company said the recent period included a discrete tax benefit of 6 cents a share.

Revenue was $3.27 billion, up from $3.19 billion. Analysts had expected the chip maker to report earnings of 43 cents a share on revenue of $3.29 billion, according to a survey by FactSet Research.

The company said it got a boost from strong sales of high-performance analog semiconductors, which are used to translate sound and temperature into digital signals that can be understood by computers. However, the company noted that its cell-phone sales were weaker, particularly in the high-end cell phone market.

The chip giant said it expects second-quarter revenue of $3.24 billion to $3.5 billion, which translates to a mid-point of $3.37 billion. Analysts had expected the company to report revenue of $3.46 billion, according to FactSet Research.

TI also said it expects earnings per share of 42 cents to 48 cents a share, compared with analysts' projection of 48 cents a share, according to FactSet.

TI's results reinforce the views of many analysts that while the company remains a strong player in chip market, particularly in the cell-phone market, it faces some rough sailing ahead due to changes in the industry and broader economic worries.

"We maintain our buy rating, but we are incrementally more cautious on Texas Instruments following a big inventory build and light June quarter guidance," analyst Daniel Berenbaum of Caris & Company said in a research note.

He added: "We have been recommending for some time that investors who do not need exposure to the semiconductor group seek other sectors to put new money to work."

Sending up a flare?

Analyst Roger Kay of Endpoint Technologies Associates said TI was sending a warning signal on the state of the market. "I think they see a weakening in their market and they want to signal it," he said. "They're talking their number down."

TI's dominant position in the cell-phone chip market has faced new challenges after its biggest customer, Nokia Corp. (NOK), decided to work with other suppliers such as Broadcom Corp. (BRCM). STMicroelectronics NV (STM) and Infineon (IFX). Another major customer, Ericsson LM (ERIC), also has shifted to a multi-supplier strategy. ###

- Eric -